Ch. 12 Communicating Customer Value: Advertising and Public Relations Flashcards
Promotion mix (or marketing communications mix)
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Sales promotion
Short-term incentives to encourage the purchase or sale of a product or service.
Personal selling
Personal presentation by the firm’s sales and building customer relationships.
Public relations (PR)
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Direct marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
Integrated marketing communications (IMC)
Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
Push strategy
A promotion strategy in which the sales force and trade promotion are used to push the product through channels. The producer promotes the products to channel members who in turn promote it to final consumers.
Pull strategy
A promotion strategy in which a company spends a lot of money on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that pulls the product through the channel.
Advertising objective
A specific communication task to be accomplished with a specific target audience during a specific period of time.
Advertising budget
The dollars and other resources allocated to a product or a company advertising program.
Affordable method
Setting the promotion budget at the level management thinks the company can afford.
Percentage-of-sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.
Competitive-parity method
Setting the promotion budget to match competitors’ outlays.
Objective-and-task method
Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
